{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

FINC 577 Chapter 9 Notes Outline

Contains three sections cash cash receipts cash cash

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: tains three sections: Cash Cash Receipts, Cash Cash Disbursements, and Financing Financing. Shows beginning and ending cash balances. Chapter 9-33 Financial Budgets: Cash Budget Basic Format Chapter 9-34 Financial Financial Budgets: Cash Budget Cash Receipts Section: Includes expected receipts from the principal sources of principal revenue – usually cash sales and collections on credit sales. Shows expected interest and dividends receipts as well as proceeds from planned sales of investments, plant assets, and capital stock. Cash Disbursements Section: Includes expected cash payments for direct materials and expected labor, taxes, dividends, plant assets, etc. Financing Section: Shows expected borrowings and repayments of borrowed expected funds plus interest. Chapter 9-35 Financial Budgets: Cash Budget Example – Hayes Company Assumptions (1) January 1, 2011, Cash balance: $38,000. (2) Sales: Collect 60% in quarter sold; 40% in next quarter; collect December 31, 2011 Accounts Receivable in Quarter 1. (3) Expected sale of short term investments: $2,000 in Quarter 1. (4) Direct Materials: Pay 50% in quarter purchased; 50% in next pay December 31, 2011 Accounts Payable in Quarter 1. (5) Direct Labor: pay 100% in quarter incurred. (6) Manufacturing Overhead and Selling/Administrative Expenses: Pay (except depreciation) in quarter incurred. (7) Expected purchase of truck: $10,000 cash in Quarter 2. (8) Estimated...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern